ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (NYSE:CXP) announced it has completed the
acquisition of the 481,110-square-foot Class-A office portion of the
historic New York Times Building, a 16-story, 731,596-square-foot
building located at 229 West 43rd Street in the Times Square
submarket of Manhattan, for $516 million.
The acquisition was funded with borrowings under Columbia’s $500 million
unsecured credit facility and a $300 million unsecured bridge loan that
bears interest at LIBOR plus 110 basis points and matures in February
2016, with one six-month extension option. The acquisition brings
Columbia’s portfolio to approximately 69% CBD and 79% multi-tenant and
its exposure to high-barrier markets to 52%, all based on annualized
lease revenue.
“With a dramatically improved portfolio, a strong balance sheet, and
existing presence in New York, we were well positioned to be
opportunistic on this acquisition,” said Nelson Mills, President and CEO
of Columbia Property Trust. “It’s a great addition to the portfolio and
provides a source of stable cash flows and diversification to complement
our other properties in Manhattan at 222 East 41st Street and
315 Park Avenue South.”
About Columbia Property Trust
Columbia Property Trust (NYSE: CXP) is a real estate investment trust
that owns and operates Class-A office buildings concentrated in CBD
locations, with over half its portfolio in high-barrier-to-entry primary
markets. As of August 4, 2015, CXP’s $5+ billion portfolio consists of
28 office properties containing 13.9 million square feet plus one hotel,
and its largest markets are San Francisco, New York, and Washington,
D.C. For more information about Columbia Property Trust, please visit www.ColumbiaPropertyTrust.com.
Forward-Looking Statements:
Certain statements contained in this press release other than
historical facts may be considered forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. We intend for all such
forward-looking statements to be covered by the applicable safe harbor
provisions for forward-looking statements contained in those acts. Such
statements include, in particular, statements about the expected funding
of the transaction, our expected leverage following the transaction,
expected NOI for the building, and our plans, strategies, and prospects
and are subject to certain risks and uncertainties, including known and
unknown risks, which could cause actual results to differ materially
from those projected or anticipated. Therefore, such statements
are not intended to be a guarantee of our performance in future periods.
Such forward-looking statements can generally be identified by our use
of forward-looking terminology such as "may," "will," "expect,"
"intend," "anticipate," "estimate," "believe," "continue," or other
similar words. Readers are cautioned not to place undue reliance on
these forward-looking statements, which speak only as of the date of
this press release. We make no representations or warranties (express or
implied) about the accuracy of any such forward-looking statements
contained in this press release, and we do not intend to publicly update
or revise any forward-looking statements, whether as a result of new
information, future events, or otherwise.
Any such forward-looking statements are subject to risks,
uncertainties, and other factors and are based on a number of
assumptions involving judgments with respect to, among other things,
future economic, competitive, and market conditions, all of which are
difficult or impossible to predict accurately. To the extent that our
assumptions differ from actual conditions, our ability to accurately
anticipate results expressed in such forward-looking statements,
including our ability to generate positive cash flow from operations,
make distributions to stockholders, and maintain the value of our real
estate properties, may be significantly hindered. See Item 1A in the
Company's most recently filed Annual Report on Form 10-K for the year
ended December 31, 2014, for a discussion of some of the risks and
uncertainties that could cause actual results to differ materially from
those presented in our forward-looking statements. The risk factors
described in our Annual Report are not the only ones we face, but do
represent those risks and uncertainties that we believe are material to
us. Additional risks and uncertainties not currently known to us or that
we currently deem immaterial may also harm our business.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150804006840/en/
Columbia Property Trust, Inc.
Tripp Sullivan, 615-760-1104
or
Jim
Fleming, 404-465-2200
IR@columbiapropertytrust.com
Source: Columbia Property Trust, Inc.